Zaif Exchange Unveils Reparation Plan for September Hack

Japanese cryptocurrency exchange Zaif discovered hack back on September 17, 2018, announcing a day later that it lost Bitcoin, Bitcoin Cash, and MonaCoin from its hot wallet, all three worth 6.7 billion Japanese yen (around $60 million) of company and client funds during a security breach. The firm froze user deposits and withdrawals during the aftermath.

Osaka-based Tech Bureau, the company behind Zaif, announced their plan to refund users after $60 million made partially of their funds were stolen in a cyber heist. In order to mitigate further potential damages, Tech Bureau stated on October 10, 2018, that is now in an agreement with a Japanese publicly listed investment firm, Fisco. The plan is to Zaif’s business to Fisco Cryptocurrency Exchange.

Fisco will continue the customer compensation scheme as per the business transfer deal. The company will utilize its own digital assets of bitcoin (BTC) and bitcoin cash (BCH) to compensate the clients who had those cryptocurrencies stolen. The grifted Monacoin however, will be refunded in Japanese yen priced at 144.548 yen per coin.

The business transfer is scheduled for November 22, 2018, and Tech Bureau will abolish its cryptocurrency exchange and the license registered with the Financial Services Agency (FSA), the Japanese financial market regulator.